3 Min ReadMarch 11, 2024

Amplify Your Dealership Technology to Add Profit, Not People

Amplify Your Dealership Technology to Add Profit, Not People.

Faced with ongoing margin compression and changing customer expectations, auto dealers are working hard to find new ways to create process efficiencies to grow their bottom lines and deliver great customer experiences. The good news is that your store can accomplish these goals without hiring more people or purchasing more technology. The key is to maximize the technology and data you already have to increase employee productivity and dealership revenue.

It’s widely understood that technology can help create efficiency, yet many systems are underutilized. With a few tweaks, dealerships can garner substantial results. Focus efforts on the following.

Master Your Dealership’s CRM

Your Customer Relationship Management system is the hub for all customer interactions but much of its power is never unlocked. If you’re using it as a stand-alone solution to house customer data, you’re missing out on its potential to integrate business operations, create process efficiencies, and deliver streamlined customer experiences.

Integration with key tools including your digital retail solution, desking, F&I and e-contracting enables seamless data flow from deal start to deal completion, which means you can

  • Increase employee productivity
  • Reduce data re-entry errors
  • Speed up the buying process for customers

These integrations will also make the CRM easier for employees to use meaning selling — and buying — cars will be easier.

Along with integrations, double down and master advanced features to help evaluate your team’s performance. This will allow you to spot and fix problems before they cost money. Use data and reports to leverage your current processes, sales team and customer contacts to improve productivity without paying for leads or new hires. Lean on your CRM provider for tips and suggestions on how to maximize utilization.

Expand Data Mining

Most dealerships are familiar with equity mining to identify existing customers in a position to trade up into a new vehicle. Equity mining efforts should be ongoing but can be supplemented with other data mining strategies. For example, the data in your CRM can be used to sharpen your marketing strategies, spot service opportunities, upsell F&I products, and more.

Think outside the box when it comes to data mining, and you’ll develop a strong strategy to combat margin compression. When you pull customers back into your service drive, or re-introduce and sell a protection product, you’ll add revenue to your bottom line and also boost customer retention.

Thanks to artificial intelligence and predictive analytics, you can quickly automate data into efficient and tailored lists to pivot marketing and sales efforts. The best tools are backed by proactive support so ask your vendor for help when you need it.

Digitize Your Paper Trail

Even the simplest car purchase requires multiple forms and signatures. Digitize your paper trail from deal start to finish in order to cut costs associated with paper documents and reduce rekeying errors.

A digital retail platform that your staff uses in store is an efficient way to eliminate some of the paper required for a purchase. Buyers can move easily from selecting a vehicle to electronically signing documents — at home, in store or a combination of both.

The F&I department is another area that often drowns in paperwork. Modernize your process with digital solutions including digital deal jackets, e-signatures and digital document hosting. If you haven’t asked your vendor if these options are available, there’s no time to waste. Digitization can help keep your F&I department organized so you can close more deals efficiently.

Combat margin compression and grow revenue without buying more technology or hiring more people to provide a modern, successful dealership experience. Make it a goal to maximize the tech you already have to create process efficiencies that benefit employees, customers and your bottom line.

Share This

Jen Miller
By Jen Miller
Lead Product Marketer, CDK Global

Jen Miller is a Lead Product Marketer for CDK Global. She is responsible for assisting the company’s sales, implementation, and success teams with go-to-market strategies for current and new product offerings. With over 15 years of experience in business development and marketing strategy, Jen has helped execute business strategies to maximize profitability and retention.

Recent Insights

Time to Roll Out Summer Sales and Service Campaigns.

Time to Roll Out Summer Sales and Service Campaigns

Whether you consider summer starting on Memorial Day, the last day of school, or the official start on June 20,...
4 Min ReadJun 13CDK Global
CDK Unveils Inaugural Dealership Workplace Study

CDK Unveils Inaugural Dealership Workplace Study

The automotive retail industry is known for long-held stereotypes about its workers and roles. To say it’s a misunderstood industry...
2 Min ReadJun 11CDK Global
Turn Service Customers Into Sales With C R M Equity Mining.

Turn Service Customers Into Sales With CRM Equity Mining

In the competitive world of automotive sales, dealerships are constantly looking for ways to increase their profits and maintain customer...
2 Min ReadJun 10Amber Good
How Dealership Service Departments Can Enhance the Customer Experience.

How Dealership Service Departments Can Enhance the Customer Experience

The spotlight is shining on delivering great customer experiences. In fact, 84% of dealers plan to increase their focus on...
4 Min ReadJun 6Don Zogg
 Car Buyers Visit More Dealerships in May

Car Buyers Visit More Dealerships in May

May was the second month in a row where 87% of car buyers CDK’s Research Team surveyed said buying their...
2 Min ReadJun 3David Thomas
Are E Vs Ready for the Summer Road trip?

Are EVs Ready for the Summer Road Trip?

The all-American pastime of the summer road trip is alive and well. The Transportation Department reported travel rose to over...
4 Min ReadMay 20CDK Global
Dealers Not Confident in O E M E CDK recently released the Dealers Face the EV Transition white paper, which details the pessimism many dealers feel about the electric future. A clear majority (65%) indeed admit to being pessimistic about EVs, and the paper delves into many of the reasons behind that number including the impact to the dealership’s revenue, consumer interest and more.   We also asked dealers about their confidence level in the EV strategy of their respective OEMs. Whether they hV Strategies.

Dealers Aren't Confident in OEM EV Strategies

CDK recently released the Dealers Face the EV Transition white paper, which details the pessimism many dealers feel about the...
2 Min ReadMay 13David Thomas
Bring Modern Convenience to the Showroom Floor.

Bring Modern Convenience to the Showroom Floor

In our technology-driven world, we’ve taken modern convenience to a whole-new level. Consumers expect to order what they need online...
3 Min ReadMay 9Steven Walker
What Dealers Say About the EV Transition

What Dealers Say About the EV Transition

As the electric vehicle revolution propels forward, dealers across the country are coming to terms with learning, selling and servicing...
1 Min ReadMay 6CDK Global
Three Dealership Accounting Woes and Fixes.

Three Dealership Accounting Woes and Fixes

Nothing can steer your auto dealership off course faster than poor accounting practices. And it’s not just about the importance...
4 Min ReadMay 6CDK Global